The myth out there is that there are no programs that can help first time home buyers buy residential properties but the truth is that this is just a myth. These days, lenders who participate in down payment programs for police offer mortgages at a lower rate of 3.5%. The loan is insured by the state or county government, therefore making it cheaper for the borrowers in the long run. It also helps to reduce the amount of monthly repayments made.
This program is open to police serving in all parts of the United States, but can only be intended to buy houses within the jurisdiction of the cities or the counties in which they serve. The home mortgage can be amortized over a period of 30 years. From downpayment assistance programs for police to interest free second mortgages for police and other special mortgage programs, the number of people who really want to buy a home without down deposit is on the rise.
To qualify for the downpayment assistance programs for police, the borrower must meet a certain income level. The house must be within defined price limits, the buyer must be a first time home owner. Moreover, the home which you are buying should be your principal residence and home owner occupied. You must also attend a seminar organized for home buyers because this will help you know more about home ownership, the challenges that come with it and your obligations.
Delayed Repayment Loans
Depending on the state where you live, you can qualify for an assistance in the form of interest free loans which
should not be paid until when the borrower opts to sell the house. The credit is awarded every year when the home buyer is filing his or her tax returns and will continue to be claimed until when the house changes hands. The delayed repayment loans will stand provided that the buyer of the house continues to use it as his or her primary residence. On average, home buyers get an assistance of $5,000-$20,000 every year depending on the value of their home.
Majority of the programs that offer downpayment assistance programs for police who want to buy houses are structured as second or silent mortgage which can only be repaid when the mortgage is sold off or when the house is sold. The assistance emanates from a number of initiatives that are run by state, county and national programs which also includes bond programs. Some of the down payment assistance programs for police are designed to work together with FHA loans, while others permits the home buyer to obtain a conventional mortgage from
lenders who participate in the program.
Where to find Downpayment Assistance Programs for Police
Finding these programs is not hard because the authorities in each state list them on their official website. Moreover, the list of participating lenders is also listed on these official websites. If you want to know if you qualify, it’s imperative that you start with the lender. Eligibility criteria is expressly stated.